The fallout from the Budget delivered on Wednesday continues to dominate the front pages.
Several papers lead on a rise in the cost of government borrowing amid investor concern about levels of government debt. The Daily Telegraph, external says the markets have “turned on” Chancellor Rachel Reeves and that the value of bonds, UK stocks, and the pound have all fallen in a “rebuke” to her plans.
The Guardian, external says some analysts have sought to draw comparisons with Liz Truss’s mini-budget, when financial markets were thrown into a tailspin, though adds that they also said the gyrations in the City on Thursday were far less substantial than those of two years ago. The paper says the Bank of England and the Treasury are on high alert and monitoring the situation.
The Financial Times, external also says that many in the City have played down any parallels with the Truss mini-budget. The paper says that, while a number of business figures have criticised Reeves’ tax rises, the chief executive of Barclays, C.S. Venkatakrishnan, has praised ministers for doing an “admirable job of balancing spending, borrowing and taxation” in order to drive growth .
“A kick in the bullocks” is the Sun’s, external front page headline. The paper says the chancellor’s decision to impose an effective 20% inheritance tax on farming land and machinery above a £1m threshold could lead to a dramatic drop in food production and supplies running low.
According to the Daily Mail, external, the chancellor has taken a huge gamble with the economy. The paper says she is “throwing obstacles in the way of business” and “risks replicating the stagnation afflicting Europe’s major economies” and “eking out meagre growth at best”.
The Times, external highlights a warning from the Office for Budget Responsibility that, by the end of this parliament, about a half of claims for the main welfare benefit will be for poor health.
It means the total cost of sickness will climb to £100bn a year. The paper says experts believe the soaring cost of sickness benefits is a key reason why the nation is paying more tax without receiving better public services, and that they are urging the government to get a grip on the problem.